# Understanding the Different Types of Commercial Construction Loans Available [Commercial construction loans](https://apwfinance.com/commercial-loan/) are financing used to fund the development and construction of commercial properties, such as office buildings, shopping centres, and hotels. Banks and other financial institutions typically offer these loans, which come in various forms to suit the needs of different borrowers. ![](https://i.imgur.com/ZH7ud5B.png) ## Types of Commercial Construction Loans There are several different types of commercial construction loans available, each with its own set of unique features and benefits. Some of the most common types of commercial construction loans include: Traditional Construction Loans Traditional construction loans are the most common type of commercial construction loan. Banks and other financial institutions typically offer these loans to finance the construction of new commercial properties. The terms of a traditional construction loan will vary depending on the lender, but they generally include a fixed interest rate, a fixed loan term, and a fixed repayment schedule. ## Mini-Perm Loans Mini-perm loans are a type of commercial construction loan designed to provide short-term financing for the construction of commercial properties. Banks and other financial institutions typically offer these loans, which are used to bridge the gap between the structure and permanent financing phases of a commercial property. Mini-perm loans typically have a term of 2-3 years and are usually interest-only during construction. ## Bridge Loans Bridge loans are a type of commercial construction loan that is used to finance the acquisition and development of commercial properties. Banks and other financial institutions typically offer these loans, designed to provide short-term financing while the borrower secures long-term funding. Bridge loans usually have a term of 1-2 years and can be interest-only or amortized over the time of the loan. ## Conclusion Commercial construction loans are a type of financing that is used to fund the development and construction of commercial properties. There are several different types of commercial construction loans available, each with its own set of unique features and benefits. Some of the most common types of commercial construction loans include traditional construction loans, mini-perm loans, bridge loans, and SBA construction loans. It is important for borrowers to understand the different types of [commercial construction loans](https://apwfinance.com/commercial-loan/) available and to choose the one that best meets their needs.